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Zuora confidential, shared under non-disclosure and subject to disclaimer notice 1
Guillaume Vives SVP, Product & Professional Services
Scaling Sales and Billing Opera;ons in the Subscrip;on Economy
@gyvives
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 2
In The Subscrip;on Economy, Focus Is On Rela;onships
Product Relationships
BUY NOW SUBSCRIBE
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 3
Quo$ng Ordering Fulfillment/Shipping Invoicing Payment/
Collec$on Accoun$ng
The Quote to Cash Process in the Subscrip;on Economy Traditional one-time charge economy
What is different with the Subscription Economy?
Quote Order Subscrip4on
Revenue event
Revenue event
Revenue event
Invoice Payment
Invoice Payment
Invoice Payment
Revenue Recognition Upsell Upsell
Upsell
Order Order
Order
Provisioning
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 4
Quote to Cash to Accoun;ng in the Subscrip;on Economy
Sales Ops (aka Front End)
Billing Ops & Revenue Ops (aka Back End)
Quote Order Subscrip4on
Revenue event
Revenue event
Revenue event
Invoice Payment
Invoice Payment
Invoice Payment
Revenue Recognition Upsell Upsell
Upsell
Order Order
Order
Provisioning
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 5
Two Sides of the Same Coin
• Quoting • Ordering • Sales Commission • Subscription Management • Provisioning • Upsells
• Invoicing • Collection/Payment • Churn Prevention • Revenue Recognition
Subscription
Sales Operations
Billing & Revenue Operations
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 6
Two Sides of the Same Coin
• Quoting • Ordering • Sales Commission • Subscription Management • Provisioning • Upsells
Sales Operations
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 7
Sales Opera;ons: The Fundamental Changes Your Sales Organiza;on
Reducing cost of sales 1
2 Con4nuous Revenue Increase of Install Base
3 Op4mizing Sales Team for Max Efficiency
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 8
Sales Opera;ons: Sales Compensa;on
COO
How do you deal with churn or downsell?
What are your business objec;ves?
Market Capture?
ACV on bookings or collec$ons is a good base for the compensa$on plan.
Long-‐term success & commitment?
TCV, upsells, and renewals are good elements of a compensa$on plan.
How do you pay your sales reps?
Dimensions Available:
ACV
TCV
Contracted Ramp
Upsell
Usage / Overage
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 9
Marke$ng Automa$on
Freemium Website
Big Data
Trend & PaNern of Usage
Provisioning
En$tlement
Online Sign-‐up & Account Mngmnt
CRM
CPQ
Sales Opera;ons: Systems and Automa;on
Marke$ng Usage Analysis
Provisioning Quo$ng automa$on
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 10
Sales Opera;ons: The Metrics That MaPer
• Cost of Sales Ops/Sales – From 1/2 to 1/12
• Opera4onal Metrics – Web visits to hand raise – Hand raise to opportunity
(Freemium?) – Qualified Freemium users – Opportunity to close – Upsell, Add-‐ons: MRR growth per
customer – ACV; TCV; Contracted Ramp – Down-‐sell and Churn
Awareness to Hand Raises
Hand Raise to Opportunity
Qualified
Closed
New Customers MRR Growth Via
Upsells & Add-Ons
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 11
Two Sides of the Same Coin
• Quoting • Ordering • Sales Commission • Subscription Management • Provisioning • Upsells
• Invoicing • Collection/Payment • Churn Prevention • Revenue Recognition
Subscription
Sales Operations
Billing & Revenue Operations
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 12
Two Sides of the Same Coin
• Invoicing • Collection/Payment • Churn Prevention • Revenue Recognition
Billing & Revenue Operations
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 13
Billing & Revenue Opera;ons: Billing Organiza;on
• Billing processes • Invoice complexity • Payments
Scaling and Automation
This is a mindset change • Churn prevention (with
Customer Care) • Upsell opportunity (with Sales)
Build Customer Relationships
Understanding the subscription is critical to managing a complex Revenue Recognition process.
Managing a Complex Process
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 14
Billing & Revenue Opera;ons: The Metrics That MaPer
Revenue Recognition
Deferred revenue balance MRR Growth
DSO / Collections $ of Billing Operations
per $ of MRR
Time to Bill Churn Prevention
= Customer
Satisfaction
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 15
Sales & Billing Opera;ons Need to Be Integrated/Automated to Be Successful
ü Transactions growth ü Customer interactions ü Sales channels
ü Cost of sales ü Introductory price point ü Cost of operations
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 16
Lessons From Our Customers
1. Consider puSng Sales Ops and Billing Ops together
2. Remember that Commerce is about rela4onships so interac4ons are important
3. Commerce is mul4-‐channel
4. It needs to be designed as an end-‐to-‐end process around the subscrip4on
5. Without automa4on, there is no scale
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 17
The COO Perspec;ve Meet The Panelists
Zuora Ben Kwon
VP, Chief of Staff
LivePerson Rob Janecek
Director of Business Systems
Versature Jonathan Moody
COO
LinkBermuda Winston Morton
VP IT @winstonmorton
Intralinks Adolfo Carreno VP Informa$on Technology & Architecture
IPR Interna4onal Kelly Torrence
EVP, Technology & Security
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 18
Round Table – Share Your Input
1. Renewals – How do you do it today? Key challenges? Lessons Learned?
2. Sales Ops and Billing Ops Collabora4on – Key opportuni$es and challenges
3. (Bonus) Sales compensa4on – What works best: model focused on market capture or long term revenue op$miza$on
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